MOSCOW (MRC) -- Arkema's adjusted net income fell by 58.5% year on year in the fourth quarter of 2022, with sales volumes dropping on weak demand in China as well as a slowdown and destocking in Europe, said the company.
Arkema aims to achieve in 2023 an EBITDA of around EUR1.5bn to EUR1.6bn. "At the beginning of the year, the macroeconomic context is marked by a lack of visibility and ongoing weak demand, in the continuity of fourth-quarter 2022," the company said.
"A progressive improvement is expected from the spring and should gather momentum in the second part of the year," it added.
Following Arkema’s Board of Directors’ meeting, held on 22 February 2023 to approve the Group’s consolidated financial statements for 2022, Chairman and CEO Thierry Le Henaff said:
“Arkema achieved an excellent year in 2022 in many respects, first of all in terms of its financial performance, with EBITDA of over EUR2 billion, reflecting the efforts of all our employees, whom I would like to thank for their commitment in a demanding environment. We also finalized a high-quality acquisition, with Ashland’s adhesives, and entered the start-up phase at our production site in Singapore for polyamide 11 and its monomer, thus strengthening the Group’s profile, resolutely focused on innovative materials. It is also a great source of pride for the teams to be recognized by rating agencies as one of the leaders in our industry in terms of CSR.
2023 has begun in an economic context of weak demand, which requires us to be strict in managing our costs and working capital, while preparing for an improvement of the environment during the course of the second quarter. We have full confidence in the long-term prospects offered by our new developments focused on decarbonization and sustainable development, and we will continue to invest in these opportunities. We will leverage our cutting-edge innovation to continue to support our customers in their quest for sustainable performance.”
We remind, Arkema announces the doubling of its polyester resins capacity in its Navi Mumbai facility in India, reinforcing the Group’s leadership position in the global powder coatings market and its commitment to developing very low-VOC technologies. Arkema invested in the Navi Mumbai facility in early 2019 to expand geographic coverage of its high performance, more sustainable, low-VOC products, and to support its customers in their development. The site includes a modern manufacturing unit and a dedicated laboratory to provide application development and technical support in the region.